A.R.S. § 5-111.01: Breakage; definition; tax; disposition

A. The term "breakage" means the odd cents by which the amount payable on each dollar wagered in a pari-mutuel pool exceeds a multiple of ten cents, except that in the case of minus pools breakage means the odd cents by which the amount payable exceeds a multiple of five cents. A person licensed under this chapter to conduct a racing meeting shall deduct the breakage from the pari-mutuel pool and such amounts shall be distributed as provided by law.

B. The breakage deducted by a horse racing or harness racing permittee shall be distributed as follows:

1. Fifty per cent shall be retained by the permittee.

2. Twenty-five per cent shall be retained by the permittee and used to supplement the general purse structure.

3. Twenty-five per cent shall be retained by the permittee to supplement purses in races in which Arizona bred horses are winners.

C. The breakage deducted by a dog racing permittee shall be retained by the dog racing permittee.